Earl Scheib, Inc. Acquired by Kelly Capital, LLC for $2.00 Per Share in Cash Merger
SAN DIEGO--Kelly Capital, LLC, a San Diego-based private equity fund, today announced the completion of its acquisition of Earl Scheib, Inc. (Pink Sheets:ESHB) for a purchase price of $2.00 per share in cash. This transaction, inclusive of debt assumed and transaction costs, is valued at approximately $16.7 million. Pursuant to the terms of a previously announced agreement and plan of merger, at the effective time of the merger today, each share of Earl Scheib common stock was automatically converted into the right to receive $2.00 in cash, without interest. Earl Scheib stockholders will receive information in the mail on how to receive payment for their shares.
In connection with the closing of the merger today, Earl Scheib is notifying Nasdaq's Market Integrity Department that it has become a wholly owned subsidiary of Kelly Capital, LLC and as a result it no longer exists as a public entity.
Michael Kelly, Chief Executive Officer of Kelly Capital, stated that “Earl Scheib is the nation’s longest running and largest company-owned operator of Automotive Paint & Collision Repair shops with the most recognized name in the market. The team at Kelly Capital is excited to continue this 72-year heritage of delivering quality automotive paint and repair services at affordable prices.”
Wedbush Morgan Securities acted as financial advisor to Earl Scheib, Inc. Sheppard, Mullin, Richter & Hampton LLP is the legal advisor to Earl Scheib, Inc. and Latham & Watkins LLP is the legal advisor to Kelly Capital, LLC. Debt financing for the transaction was provided by Wells Fargo Foothill, part of Wells Fargo & Company , and St. Cloud Capital Partners II, L.P.